Timminco shines with solar deal
Thursday, March 27, 2008
If you keep a mental file of stocks you should have bought but didn't, add Timminco Ltd. to the heap. The company, which produces specialty metals for a number of industries, announced[amp]nbsp;late Wednesday[amp]nbsp;that it had agreed to supply solar-grade silicon to Q-Cells AG, a German company that is the largest supplier of solar cells.
Did someone say “solar”? Timminco's shares jumped about 25 per cent on the news when trading began on Thursday, and have held that level throughout the day. The shares traded in Toronto at $25.90, up $5.01. This latest surge is nothing, though: The shares are up more than 3,900 per cent over the past 12 months, trading at just 65 cents a year ago.
The three analysts who updated their research since the Timminco-Q-Cells news broke (but before the shares jumped), have maintained their recommendations and 12-month target prices on the stock. But if you're wondering if there are more gains ahead for Timminco, the combined views of the analyst may not help you make a decision.
The Cormark Securities analyst is maintaining a “reduce” recommendation with a target of $19.50 – representing a downside of 25 per cent. At the other extreme, the Clarus Securities analyst is maintaining a “buy” recommendation with a target of $40 – representing an upside of more than 50 per cent.
And if you take the Goldilocks approach to investing (not too hot, not too cold), then the National Bank Financial analyst may be just what you're looking for: he has a “sector perform” recommendation and a $24 target. That target is either going to have to get bumped up, given Thursday's rally, or his recommendation is going to have to come down.
[amp]nbsp;
© Copyright The Globe and Mail
Timminco Announces Solar Grade Silicon Supply Agreement with Q-Cells AG
23:59 EDT Wednesday, March 26, 2008
TORONTO, ONTARIO--(Marketwire - March 26, 2008) - Timminco Limited ("Timminco") (TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has entered into an agreement to supply solar grade silicon to Q-Cells AG ("Q-Cells") (FRANKFURT:QCE). Q-Cells is the world's largest manufacturer of solar cells.
Under the terms of the agreement, BSI will supply Q-Cells with contractually fixed supplies of 410 metric tons (mt) in 2008 and 3,000 mt in 2009 at fixed prices. The deliveries start immediately. Until the end of July 2008 the partners will negotiate a further contract on the delivery of up to 6,000 mt per year in the years 2010 to 2013. The price for these possible further supplies will be negotiated contingent upon market conditions. With this contract Q-Cells will become BSI's largest customer for solar grade silicon in 2009.
This agreement represents BSI's fifth long-term commercial contract for the sale of high purity silicon. In the event that Q-Cells and BSI agree to extend the contract to 6,000 mt per year for the period 2010 to 2013, this contract would raise the committed deliveries of BSI's solar grade silicon business to 12,000 mt per year beginning in 2010. On February 22, 2008 Timminco announced the expansion of BSI's solar grade silicon capacity to 14,400 mt per year, with the incremental capacity fully on stream by the end of the second quarter of 2009.
"BSI has developed a proprietary process which enables it to produce solar grade silicon by purifying metallurgical silicon. Q-Cells has tested unblended material from BSI extensively and has obtained very good results in cell production", said Mr. Anton Milner, CEO of Q-Cells.
"This contract represents a giant step for our solar grade silicon business. Q-Cells is a leader in the photovoltaic industry and their endorsement of our material through this supply agreement is further evidence of the paradigm shift we are creating in the solar grade silicon market." said Mr. Rene Boisvert, President and CEO of BSI.
ABOUT TIMMINCO
Timminco is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
Timminco loses $18.03-million in 2007
2008-03-17 19:40 ET - News Release
Dr. Heinz Schimmelbusch reports
TIMMINCO REPORTS FOURTH QUARTER AND YEAR END FISCAL 2007 RESULTS
Timminco Ltd. has released its preliminary financial results for the fourth quarter and fiscal year ended Dec. 31, 2007.
Highlights for the fourth quarter:
Completed construction of solar-grade silicon manufacturing facility with annual production capacity of 3,600 metric tons;
Commenced production on the first of three 1,200-metric-ton lines;
Shipped 33 metric tons of solar-grade silicon, bringing cumulative year-to-date shipments to 89 metric tons;
Sales of $36.4-million compared with $47.6-million for fiscal 2006;
Net loss of $8.8-million, or eight cents per share, compared with a net loss of $38.7-million, or 53 cents per share, in the fourth quarter of 2006.
Highlights for fiscal 2007:
Secured sales contracts with four key customers for approximately 28,000 metric tons of solar-grade silicon through 2012;
Completed two bought-deal equity offerings and a private placement generating gross proceeds of $116.2-million, primarily to finance expansion of solar-grade silicon production capacity;
Sales of $166.2-million compared with $181.8-million for fiscal 2006;
Net loss of $18.0-million, or 20 cents per share, compared with a net loss of $46.2-million, or 62 cents per share, for fiscal 2006.
Highlights subsequent to quarter-end:
Commenced production on second and third of three 1,200-metric-ton lines;
Announced further expansion of annual production capacity of solar-grade silicon from 3,600 to 14,400 metric tons;
S&P/TSX Composite Index revised to include Timminco as of March 24, 2008.
Overview
Timminco has two reporting segments:
The silicon group, which includes the silicon metal and solar silicon businesses;
The magnesium group, which includes the magnesium extrusion and fabrication business.
Timminco also has a minority investment in an aluminum wheels business.
"Fiscal 2007 was a year of transition for Timminco as we focused on establishing production and securing our first customer contracts in our solar-grade silicon business, while at the same time positioning our silicon metal and magnesium businesses for improved performance going forward," said Dr. Heinz Schimmelbusch, chairman of the board and chief executive officer of Timminco. "In December, less than six months after breaking ground on our 3,600-metric-ton solar-grade silicon facility, we commenced production and now have all three lines operating. Before year-end, we had also secured four long-term contracts that commit us to supply up to 6,000 metric tons per year of solar-grade silicon beginning in 2009.
Dr. Schimmelbusch continued: "We are optimistic about the potential for both our historical silicon metal business and our magnesium business. The rise in silicon metal prices, which have more than doubled over the last 24 months, has created a favourable environment for our silicon metal business for the foreseeable future. Following the restructuring of our magnesium business in 2007, we are focused on bringing our cost structure in line with the goal of returning this business to profitability."
Results for the fourth quarter
Sales for the fourth quarter of 2007 were $36.4-million, compared with sales of $47.6-million for the fourth quarter of 2006. The decrease is the result of lower sales in both the silicon group and the magnesium group. The appreciation of the Canadian dollar had an unfavourable impact of reducing reported sales by $4.6-million compared with the fourth quarter of fiscal 2006. During the fourth quarter of fiscal 2007, the average United States/Canadian-dollar exchange rate was approximately 98 cents, compared with approximately $1.13 for the fourth quarter of fiscal 2006.
Net loss for the fourth quarter of fiscal 2007 was $8.8-million, or eight cents per share, compared with a net loss of $38.7-million, or 53 cents per share, for the fourth quarter of 2006. Included in the net loss for the fourth quarter of 2006 is an asset impairment charge of $31.2-million.
Cash and short-term investments at Dec. 31, 2007, were $34.6-million, compared with $800,000 at Dec. 31, 2006. The increase was the result of gross proceeds from two bought-deal equity offerings and a private placement in fiscal 2007 that generated gross proceeds of $116.2-million. The majority of cash used during the period was related to building the solar-grade silicon facility and the repayment of long-term debt. Bank indebtedness at Dec. 31, 2007, was $21,000, compared with $26.2-million at Dec. 31, 2006.
Fiscal 2007 results
Sales for fiscal 2007 were $166.2-million, compared with $181.8-million for fiscal 2006. The appreciation of the Canadian dollar had the unfavourable impact of reducing reported sales by $6.7-million. During fiscal 2007, the average U.S./Canadian-dollar exchange rate was approximately $1.08, compared with approximately $1.13 for fiscal 2006.
The net loss for fiscal 2007 was $18.0-million, or 20 cents per share, compared with a net loss of $46.2-million, or 62 cents per share, for fiscal 2006. Included in the net loss for fiscal 2006 are restructuring and impairment charges of $33.2-million.
Thursday, March 27, 2008
If you keep a mental file of stocks you should have bought but didn't, add Timminco Ltd. to the heap. The company, which produces specialty metals for a number of industries, announced[amp]nbsp;late Wednesday[amp]nbsp;that it had agreed to supply solar-grade silicon to Q-Cells AG, a German company that is the largest supplier of solar cells.
Did someone say “solar”? Timminco's shares jumped about 25 per cent on the news when trading began on Thursday, and have held that level throughout the day. The shares traded in Toronto at $25.90, up $5.01. This latest surge is nothing, though: The shares are up more than 3,900 per cent over the past 12 months, trading at just 65 cents a year ago.
The three analysts who updated their research since the Timminco-Q-Cells news broke (but before the shares jumped), have maintained their recommendations and 12-month target prices on the stock. But if you're wondering if there are more gains ahead for Timminco, the combined views of the analyst may not help you make a decision.
The Cormark Securities analyst is maintaining a “reduce” recommendation with a target of $19.50 – representing a downside of 25 per cent. At the other extreme, the Clarus Securities analyst is maintaining a “buy” recommendation with a target of $40 – representing an upside of more than 50 per cent.
And if you take the Goldilocks approach to investing (not too hot, not too cold), then the National Bank Financial analyst may be just what you're looking for: he has a “sector perform” recommendation and a $24 target. That target is either going to have to get bumped up, given Thursday's rally, or his recommendation is going to have to come down.
[amp]nbsp;
© Copyright The Globe and Mail
Timminco Announces Solar Grade Silicon Supply Agreement with Q-Cells AG
23:59 EDT Wednesday, March 26, 2008
TORONTO, ONTARIO--(Marketwire - March 26, 2008) - Timminco Limited ("Timminco") (TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has entered into an agreement to supply solar grade silicon to Q-Cells AG ("Q-Cells") (FRANKFURT:QCE). Q-Cells is the world's largest manufacturer of solar cells.
Under the terms of the agreement, BSI will supply Q-Cells with contractually fixed supplies of 410 metric tons (mt) in 2008 and 3,000 mt in 2009 at fixed prices. The deliveries start immediately. Until the end of July 2008 the partners will negotiate a further contract on the delivery of up to 6,000 mt per year in the years 2010 to 2013. The price for these possible further supplies will be negotiated contingent upon market conditions. With this contract Q-Cells will become BSI's largest customer for solar grade silicon in 2009.
This agreement represents BSI's fifth long-term commercial contract for the sale of high purity silicon. In the event that Q-Cells and BSI agree to extend the contract to 6,000 mt per year for the period 2010 to 2013, this contract would raise the committed deliveries of BSI's solar grade silicon business to 12,000 mt per year beginning in 2010. On February 22, 2008 Timminco announced the expansion of BSI's solar grade silicon capacity to 14,400 mt per year, with the incremental capacity fully on stream by the end of the second quarter of 2009.
"BSI has developed a proprietary process which enables it to produce solar grade silicon by purifying metallurgical silicon. Q-Cells has tested unblended material from BSI extensively and has obtained very good results in cell production", said Mr. Anton Milner, CEO of Q-Cells.
"This contract represents a giant step for our solar grade silicon business. Q-Cells is a leader in the photovoltaic industry and their endorsement of our material through this supply agreement is further evidence of the paradigm shift we are creating in the solar grade silicon market." said Mr. Rene Boisvert, President and CEO of BSI.
ABOUT TIMMINCO
Timminco is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
Timminco loses $18.03-million in 2007
2008-03-17 19:40 ET - News Release
Dr. Heinz Schimmelbusch reports
TIMMINCO REPORTS FOURTH QUARTER AND YEAR END FISCAL 2007 RESULTS
Timminco Ltd. has released its preliminary financial results for the fourth quarter and fiscal year ended Dec. 31, 2007.
Highlights for the fourth quarter:
Completed construction of solar-grade silicon manufacturing facility with annual production capacity of 3,600 metric tons;
Commenced production on the first of three 1,200-metric-ton lines;
Shipped 33 metric tons of solar-grade silicon, bringing cumulative year-to-date shipments to 89 metric tons;
Sales of $36.4-million compared with $47.6-million for fiscal 2006;
Net loss of $8.8-million, or eight cents per share, compared with a net loss of $38.7-million, or 53 cents per share, in the fourth quarter of 2006.
Highlights for fiscal 2007:
Secured sales contracts with four key customers for approximately 28,000 metric tons of solar-grade silicon through 2012;
Completed two bought-deal equity offerings and a private placement generating gross proceeds of $116.2-million, primarily to finance expansion of solar-grade silicon production capacity;
Sales of $166.2-million compared with $181.8-million for fiscal 2006;
Net loss of $18.0-million, or 20 cents per share, compared with a net loss of $46.2-million, or 62 cents per share, for fiscal 2006.
Highlights subsequent to quarter-end:
Commenced production on second and third of three 1,200-metric-ton lines;
Announced further expansion of annual production capacity of solar-grade silicon from 3,600 to 14,400 metric tons;
S&P/TSX Composite Index revised to include Timminco as of March 24, 2008.
Overview
Timminco has two reporting segments:
The silicon group, which includes the silicon metal and solar silicon businesses;
The magnesium group, which includes the magnesium extrusion and fabrication business.
Timminco also has a minority investment in an aluminum wheels business.
"Fiscal 2007 was a year of transition for Timminco as we focused on establishing production and securing our first customer contracts in our solar-grade silicon business, while at the same time positioning our silicon metal and magnesium businesses for improved performance going forward," said Dr. Heinz Schimmelbusch, chairman of the board and chief executive officer of Timminco. "In December, less than six months after breaking ground on our 3,600-metric-ton solar-grade silicon facility, we commenced production and now have all three lines operating. Before year-end, we had also secured four long-term contracts that commit us to supply up to 6,000 metric tons per year of solar-grade silicon beginning in 2009.
Based on our success to date, as well as a strong pipeline of prospective customers, we made the decision last month to expand our production capacity to 14,400 metric tons annually. Looking ahead, we are firmly focused on leveraging our position as a low-cost producer of solar-grade silicon to capitalize on the tremendous opportunity in the high-growth solar photovoltaic energy industry."
Dr. Schimmelbusch continued: "We are optimistic about the potential for both our historical silicon metal business and our magnesium business. The rise in silicon metal prices, which have more than doubled over the last 24 months, has created a favourable environment for our silicon metal business for the foreseeable future. Following the restructuring of our magnesium business in 2007, we are focused on bringing our cost structure in line with the goal of returning this business to profitability."
Results for the fourth quarter
Sales for the fourth quarter of 2007 were $36.4-million, compared with sales of $47.6-million for the fourth quarter of 2006. The decrease is the result of lower sales in both the silicon group and the magnesium group. The appreciation of the Canadian dollar had an unfavourable impact of reducing reported sales by $4.6-million compared with the fourth quarter of fiscal 2006. During the fourth quarter of fiscal 2007, the average United States/Canadian-dollar exchange rate was approximately 98 cents, compared with approximately $1.13 for the fourth quarter of fiscal 2006.
Net loss for the fourth quarter of fiscal 2007 was $8.8-million, or eight cents per share, compared with a net loss of $38.7-million, or 53 cents per share, for the fourth quarter of 2006. Included in the net loss for the fourth quarter of 2006 is an asset impairment charge of $31.2-million.
Cash and short-term investments at Dec. 31, 2007, were $34.6-million, compared with $800,000 at Dec. 31, 2006. The increase was the result of gross proceeds from two bought-deal equity offerings and a private placement in fiscal 2007 that generated gross proceeds of $116.2-million. The majority of cash used during the period was related to building the solar-grade silicon facility and the repayment of long-term debt. Bank indebtedness at Dec. 31, 2007, was $21,000, compared with $26.2-million at Dec. 31, 2006.
Fiscal 2007 results
Sales for fiscal 2007 were $166.2-million, compared with $181.8-million for fiscal 2006. The appreciation of the Canadian dollar had the unfavourable impact of reducing reported sales by $6.7-million. During fiscal 2007, the average U.S./Canadian-dollar exchange rate was approximately $1.08, compared with approximately $1.13 for fiscal 2006.
The net loss for fiscal 2007 was $18.0-million, or 20 cents per share, compared with a net loss of $46.2-million, or 62 cents per share, for fiscal 2006. Included in the net loss for fiscal 2006 are restructuring and impairment charges of $33.2-million.
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